GM Adds Online Used-Vehicle Buying Program
Photo courtesy of GM.
A surplus of low-mileage used vehicle will soon be hitting the market, and they’re going to be coming from General Motors. Set to launch in February, GM’s new Factory Pre-Owned Collection website will offer consumers more than 30,000 used cars with less than 37,000 miles on the odometer.
The automaker’s decision to open up its remarketing channel to consumers through an online portal that will take advantage of its Shop-Click-Drive car-buying service may give dealers pause, but GM spokesperson Ryndee Carney said the move is designed to help GM dealers compete with third-party sites that are disrupting the used-car market.
“The benefit for dealers is that it will help them achieve incremental used-car sales by having access to ‘virtual’ inventory they do not have to floorplan nor advertise/market, as well as allow them to engage with customers whom they would not normally see in their showrooms ..,” Carney said in a statement emailed to F&I and Showroom. She added that participating dealers will also have the opportunity to sell F&I products on vehicles sold through the portal, as well as benefit from warranty and customer-paid repairs performed by their service departments.
According to GM, customers will be able to purchase a vehicle in three steps: They first select a vehicle, then choose a dealer from which to take delivery of the vehicle, and then reserve the vehicle through Shop-Click-Drive. The purchase, however, won’t be completed until the customer visits their selected dealership to complete the paperwork and take delivery.
“Technology and consumer demands are disrupting the used-car marketplace, and GM is leading the way in transforming the way used cars are sold,” said Alan Batey, president of GM North America, in a company press release.
The website’s inventory will consist of GM company-owned, off-rental and off-lease vehicles. Consumers will be able to compare the suggested prices with what others in the area have paid through the Kelley Blue Book Fair Market Range. They will also have access to Carfax Vehicle History Reports.
This service comes at a time when new-vehicle sales numbers are at an all-time high, peaking last year after several years of progressive growth at a record-breaking 17.5 million units. The move also comes at a time when a tidal wave of off-lease vehicles are expected to hit the market — another reason for GM’s decision, Carney said.
“The Factory Pre-Owned Collection is another way that we can help manage residual values of our vehicles, including an anticipated increase in vehicles coming off-lease in the next few years,” Carney said.
Editor's note: This story first appeared on F&I and Showroom's website.